Burton Albion is under investigation by the Football Association concerning their record-breaking transfer activities last summer.
The League One club has confirmed collaboration with the FA and the English Football League regarding this issue but has refrained from commenting on specific details.
According to BBC Radio Derby, the investigation focuses on the extent of involvement and potential conflicts of interest related to outsourced recruitment following Burton's acquisition by the Sweden-based Nordic Football Group (NFG).
Following the demand for a complete overhaul by the new owners, Burton signed 23 players last summer, setting a new British record for the number of signings in a single transfer window.
Tom Mahon, Burton's Chief Operating Officer since May, stated that the investigation centers "purely on last summer" and has had "no material impact" on the club's ability "to do business" for the upcoming season.
"It hasn't hindered our recruitment efforts so far—we have seen several players join and leave the club," Mahon told BBC Radio Derby.
Mahon, who previously worked at Manchester City for 15 years before becoming COO at Stockport County, also discussed recent redundancies in off-field staff and the lessons learned from last season's close call with relegation.
The redundancies are reportedly a response to significant financial losses, with the structure of player contracts—offering a 20% bonus for each point earned—posing a major financial burden.
Mahon explained that the layoffs were made to "streamline the organization" and enhance "efficiency," assuring that the club is "absolutely fine" financially moving forward.
"This decision, while difficult, was necessary for the club's best interests," he said, acknowledging the personal impact on long-serving staff.
Among those affected is Ben Robinson Jr., son of the former long-time owner, who remains involved as honorary chairman.
"Regarding Ben Jr., the role he held did not align with our broader plans, and this decision is about the position, not the individual," Mahon clarified.
Maintaining a connection to the Robinson family is seen as vital by NFG to preserve Burton's historic achievements, rising from non-league to the Championship.
Fleur Robinson, daughter of Ben Robinson Sr., was brought back from Wrexham to serve as chief executive, a role she left at the end of the season.
Her departure concluded a tumultuous first year under NFG, during which founder and deputy chairman Tom Davidson, chairman Ole Jakob Strandhagen, and commercial director Kevin Skabo all stepped down.
Bendik Hareide, who began last season as sporting director, left in January after a leave of absence for personal reasons.
Richard Dorman, formerly the technical director at Finnish club SJK Seinajoki, replaced Hareide, while Wouter Gudde, known as a 'rebuild specialist' from Dutch side FC Groningen, assumed the roles of interim chairman and chief executive.
"For those who experienced last year, it's crucial to view it as a learning opportunity. You often learn more from setbacks, not to label it as failure," Mahon reflected. "It's a learning experience that can positively influence our future direction."
Bright Ideas Turned Into Relegation Fight - Analysis
Dominic Dietrich, BBC Radio Derby senior journalist
When NFG took over Burton Albion a year ago, they brought fresh ideas and enthusiasm that many hadn't experienced before.
However, over the year, it became clear that their excitement sometimes led to naivety, opting for immediate, sweeping changes instead of gradual progress.
Initial hopes for a new pitch, establishing a base at St George's Park, and building on a British record of 23 summer signings soon turned into a relegation battle and a sacked head coach.
If not for the arrival of head coach Gary Bowyer and his assistant Pat Lyons in December, this could have been a story about rebuilding from League Two.
It seems Burton overspent in their first year, resulting in redundancies, streamlining the business, and a new outlook on League One football.
Will the challenge be even tougher this year for Bowyer? That remains to be seen, but it certainly appears so, with Tom Mahon and Wouter Gudde tasked with picking up the pieces left by the initial board members introduced to the Brewers' supporters.